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MF HERCC

MF HERCC. Program Design & Implementation Recommendations Green Affordable Housing Coalition AIA East Bay December 7 th , 2010. Overview. About MF HERCC Understanding CA’s Multifamily Retrofit Market Program Design & Implementation Recommendations Program Delivery

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MF HERCC

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  1. MF HERCC Program Design & Implementation Recommendations Green Affordable Housing Coalition AIA East Bay December 7th, 2010

  2. Overview • About MF HERCC • Understanding CA’s Multifamily Retrofit Market • Program Design & Implementation Recommendations • Program Delivery • Professional Qualification & Training • Prescriptive vs. Performance Whole-Building Approach • Energy Analysis Software • Low-income & Energy Efficiency Program Coordination • Energy Upgrade CA in Alameda County Multifamily

  3. Multifamily HERCC • EPA Region IX convenes: California Home Energy Retrofit Coordinating Committee (CA HERCC) • StopWaste.Org chairs: MF Sub-Committee (MF HERCC) • Develop consensus program design recommendations for financing & home retrofit programs • Engage Various Stakeholders • Local, State, Federal Government • Utilities • Consultants & Industry professionals (deliverables & pilot projects) • Task Forces: • Professional Quals & Training, Audit Protocols, IT Data Collection Protocols, Weatherization & low-income program coordination, HERS II MF tools

  4. Opportunities • In California, approximately one-third of households reside in multifamily buildings. 1 1. California Public Utilities Commission, “California Long-Term Energy Efficiency Strategic Plan,” September 2008.

  5. Opportunities • Nationwide: • > 70 % of MF housing units constructed before established building energy efficiency codes.2 • In California:3 • >2.4 million existing mulitfamily dwelling units, 15% market penetration would be ~336,000 Dwellings • A 25% energy upgrade of 336,000 dwellings = • 533,971 megawatt-hours (MWh) of electricity • 37 million therms of natural gas • Avoided greenhouse gas emissions would be 430,245 MTCO2E annually 2. Energy Foundation, “U.S. Multifamily Energy Efficiency Potential by 2020,” October 19, 2009, prepared by The Benningfield Group, Inc. 3. Calculations completed using methodology from the California Air Resources Board (CARB) AB 32 scoping plan as presented in GreenPoint Rated Existing Home Multifamily program report from StopWaste.Org to Energy Foundation, 2008.

  6. Opportunities • Nationwide: • > 70 % of MF housing units constructed before established building energy efficiency codes.2 • In California:3 • >2.4 million existing mulitfamily dwelling units, 15% market penetration would be ~336,000 Dwellings • A 25% energy upgrade of 336,000 dwellings = • 533,971 megawatt-hours (MWh) of electricity • 37 million therms of natural gas • Avoided greenhouse gas emissions would be 430,245 MTCO2E annually 2. Energy Foundation, “U.S. Multifamily Energy Efficiency Potential by 2020,” October 19, 2009, prepared by The Benningfield Group, Inc. 3. Calculations completed using methodology from the California Air Resources Board (CARB) AB 32 scoping plan as presented in GreenPoint Rated Existing Home Multifamily program report from StopWaste.Org to Energy Foundation, 2008.

  7. Understanding CA’s Multifamily Market • MF Retrofit Challenges & Opportunities • Building types • Financing • Split incentives • Trigger events • Cost-effective energy savings measures

  8. Multifamily Sub-sectors

  9. Multifamily Building Types

  10. MF Decision Making Factors

  11. Leveraging MF Financing • Federal Programs • Weatherization Assistance Program (WAP)   • HUD Green Retrofit Program (GRP) • HUD Neighborhood Stabilization Program (NSP) • Energy Efficiency Tax Deduction (ownership, HRMF commercial) • Affordable Housing Finance • State/Federal: TCAC/CDLAC/HCD/CalHFA (LIHTC/Bond Financing) • Local: Housing & Redevelopment Agencies • LISC, Enterprise, National Housing Trust, StopWaste.Org • Utility Programs (various: see CPUC matrix) • Energy Efficiency& Solar • Low Income

  12. Trigger Events

  13. Cost-Effective Energy Saving Measures • (Central) Domestic Hot Water Systems = largest single savings opportunity in MF across CZ & building types • Less surface area to exterior than SF, less energy used for heating & cooling • CDHW • Increase AFUE of the water heater • Solar pre-heat systems • Distribution system strategies • extra pipe insulation • recirculation & temperature modulation controls • high-efficiency recirculation pumps • CDHW Savings weighed against hot water sub-metering limitations

  14. Cost-Effective Energy Saving Measures • MF differs from Single Family: • Common area, garage & landscape lighting • Equipment commissioning & professional energy/property management • Limited area for installation of photovoltaic arrays • Measures such as cool-roof & radiant barriers have less impact in taller buildings where the roof is less surface area than the walls • Air infiltration to the exterior is less of an issue with multifamily buildings than is heat & air transfer between dwelling units & between dwelling units & common areas • Common exhaust ventilation systems for kitchens, bathrooms & laundry rooms

  15. Cost-Effective Energy Saving Measures • MF differs from Single Family: • Less energy in heating & cooling through reduced exterior surface area • Cooking & refrigeration comprise a larger portion of the energy budget • HERS II analysis of average dwelling unit: • In coastal climate zones approximately 40% of overall MF energy from appliances & lighting • In inland climate zones approximately 13% of overall MF energy from appliances & lighting • Appliance ownership is less common • Often have central laundry facilities or no on-premises laundry

  16. MF HERCC Recommendations • Recommendations & Analysis in five specific areas: • Program delivery • Professional qualification & training • Prescriptive vs. performance whole-building approach • Improving the applicability of energy analysis software to the multifamily sector • Coordination of low-income & energy efficiency programs

  17. Program Delivery

  18. Program Delivery • Multifamily owners select their owner contractors • Consultant vs. contractor program model • Resist being limited to program-approved contractors • Multifamily owners need to integrate incentives with multiple funding sources • HERS has an established network of professional raters • Existing multifamily programs already use successful rater/energy consultant model

  19. Professional Qualifications & Training • Target MF training to 4 types of professionals who work on MF Buildings: • Raters/Verifiers • Building Operators • Central Water Heating System Contractors • Energy Analysts • Multifamily Supplement to HERS II & GPR Training • First MF Existing Building Rater training in Oakland: • In Oakland November 29-Dec 3, to be re-delivered in So-Cal in Q1 2011 • 37 Rater/Verifier Participants from SMUD & ABAG Regions (GPR required to be listed on EU CA in Alameda County certified professionals directory) • Delivered by: Build It Green & CalCERTS, HMG & AEA

  20. MF Prescriptive & Performance Programs EnergyUpgrade CA Current State Wide MF IOU

  21. Performance Approach & Cost Analysis • Whole-building programs: • Is it a good idea to provide statewide whole-building prescriptive packages to equal whole-building performance approach? • What would be a feasible performance improvement target for various MF building types & vintages? • What is the estimated cost to achieve 10%, 15%, 20% savings? • What incentive amount would be enough to spur retrofit activity?

  22. Prototype MF Bldgs Determined feasible performance thresholds: HMG Analysis: HMG delivered a list of measures (and T-24 Energy Pro 5 Input files) used to reach 20% and 40% reduction in energy performance (in heating, cooling and water heating, excluding appliances & lighting) for the following prototypes in all 16 climate zones. The analysis was done with individual and central water heating systems, and with gas and electric heat. From the analysis, we determined in general that 40% improvement was difficult to achieve in many cases without the use of DHW solar pre-heat, and in some cases 20% improvement was difficult without changing out windows. • Real MF buildings into CEC defaults • 4 unit low-rise, 40 unit low-rise, 80 unit high-rise • Performance Improvement Measures = 20% & 40% • All 16 Climate Zones (CZ) • T-24 approach: Heating, Cooling & DHW only • Central & individual water heating • Gas & electric heating • HERS II approach: Add Lighting & Appliances • Three Vintages • Pre code • 1980-2000 • 2001 code

  23. Feasible Improvement Targets • 10 % energy improvement feasible for all building types, system types, vintages & climate zones • 20 % improvement required upgrades to both windows and wall insulation in many climate zones. • 40 % improvement is often not possible to achieve in coastal climate zones without the use of solar pre-heat for domestic water heating.

  24. Feasible Improvement Targets

  25. Software Recommendations Determined feasible performance thresholds: HMG Analysis: HMG delivered a list of measures (and T-24 Energy Pro 5 Input files) used to reach 20% and 40% reduction in energy performance (in heating, cooling and water heating, excluding appliances & lighting) for the following prototypes in all 16 climate zones. The analysis was done with individual and central water heating systems, and with gas and electric heat. From the analysis, we determined in general that 40% improvement was difficult to achieve in many cases without the use of DHW solar pre-heat, and in some cases 20% improvement was difficult without changing out windows. • Use code compliance software as standard baseline reference for energy savings reporting in ARRA, local government or utility funded programs • Use supplemental software programs where necessary to optimize analysis of energy savings opportunities • Apply CEC HERS II residential multifamily low-rise protocols to high-rise multifamily in ACM software • Align funding programs’ software analysis requirements to reduce administrative barriers to leveraging resources from multiple programs

  26. Low Income Energy Upgrade Programs • Federal, State, Utility • Leading Sources • CPUC/IOUs – Low Income Energy Efficiency - $178 million (LIHEAP Clearinghouse) • HHS – Low Income Home Energy Assistance Program - $ 49 million (2009) • DOE – Weatherization Assistance Program - $202 million (2009) • DOE – State Energy Program – Residential Energy Programs • Supporting Sources • CALIF –Low Income Housing Tax Credit Program; Various housing programs • HUD – Green Retrofit – $170 million (estimate at avg. $10,000/unit) • HUD – Public Housing Capital Fund – $36.7 million • HUD – Neighborhood Stabilization – ~$500 million (NSP1); $318 million (NSP2) • HUD – Property reserves, receipts; Capital capital and operations funding • Many other housing sources…..

  27. Aligning Program Design Procedural & Technical Barriers Affecting Access – • Application & Methods of Income Qualifications • Role & Responsibility of Property Owner vs. home owner • Assessment protocols & tools vary between programs • Capacity Limitations • Multiple Points of Delivery Policy Barriers Affecting Program Scope & Results – • Investment Focus: Household vs. “Whole Building “ or Property • Investment Criteria: Prescriptive Scopes vs. Performance-Based • Measurement of Success: Production output vs. Outcome metrics (data to support investments)

  28. Low Income ACCESS & DELIVERY • Develop common platform to integrate & coordinate energy efficiency programs serving low-income households • Utilize whole-building performance approach to analysis • Establish energy auditing conventions for use across low-income energy efficiency programs • Establish cross-program approach to track and monitor post-retrofit energy performance • Enable property owners to apply for assistance on behalf of low income tenants through “whole property” approaches if low income tenant occupancy reaches thresholds • Align house hold income eligibility across low-income programs

  29. Energy Upgrade California MF See MF HERCC Recommendations for CPUC summary of IOU MF programs D0909047 authorized Prescriptive and performance options for both SF & MF; expanding to MF in 2011 “The types of program enhancements that the IOUs will consider to make the program more attractive to MF properties include: Modifying the prescriptive measure list Modifying the incentive levels; & Including referral plans within a MF offering to coordinate with applicable non-IOU financing” 4 The MF HERCC and CEC-sponsored MF programs offer important models for expansion of IOU Energy Upgrade CA to MF 4. California Public Utilities Commission, “California Long-Term Energy Efficiency Strategic Plan,” September 2008.

  30. About Energy Upgrade California • Statewide program for improving single-family, multifamily and commercial buildings • Collaboration among state agencies, utilities, and local governments • One-stop resource for information: • Benefits of doing upgrades • Find a qualified professional • Locate financing and incentives • Pursue home ratings • www.EnergyUpgradeCA.org

  31. Energy Upgrade CA in Alameda County: MF Determined feasible performance thresholds: HMG Analysis: HMG delivered a list of measures (and T-24 Energy Pro 5 Input files) used to reach 20% and 40% reduction in energy performance (in heating, cooling and water heating, excluding appliances & lighting) for the following prototypes in all 16 climate zones. The analysis was done with individual and central water heating systems, and with gas and electric heat. From the analysis, we determined in general that 40% improvement was difficult to achieve in many cases without the use of DHW solar pre-heat, and in some cases 20% improvement was difficult without changing out windows. • Qualified Consultant’s Directory • Green Labeling Rebates for GreenPoint Rated Existing MF Buildings in Jan 2011 • DOE Better Buildings Program grant to promote green labeling • Based upon GBAC MF Technical Assistance & Grants to Non-profit Housing Program, new resources available to market-rate • Marketing campaign for green labeling beginning March 2011 • Related real-estate advocacy to include green ratings on MLS • Tools in Development for MF projects statewide • MF HERCC Standards & GPR EHMF verification protocols • Financing Navigation Tool, Tracking System & Auditor Interface • HRMF Improvements to HERS II & T-24 analysis programs

  32. Goals in Alameda County • Improve 8,500 MF & SF housing units by 2012

  33. Heather Larson Green Building in Alameda County- StopWaste.OrgGreen Building Program Mangerhlarson@stopwaste.org(510) 891-6500

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